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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (29377)	12/23/2007 7:26:03 AM
From: Madharry	Read Replies (1) \| Respond to of 78476

I dont think Paul is brushing off your concerns. he is just saying he is more comfortable buying a big basket of such entities as opposed to just a couple of them, probably for the same concerns you have outlined. Of course most of us are incapable of managing a 200 stock portfolio. Brings to mind one of my tales of woe- Investing in an overseas insurnace company- london pacific that was heavily invested into hi tech startups. they were declared insolvent and taken over, not because of their technology investments but because they had a huge amount of their equity invested in worldcomm bonds. go figure!

To: Jurgis Bekepuris who wrote (29377)	12/23/2007 1:27:24 PM
From: Carey Thompson	Read Replies (1) \| Respond to of 78476

Jurgis Bekepuris you have helped me analyze the Tyco spinoffs in the past. Thank you very much for patience and generosity. I think it may be time to look at the financial stocks with an eye to their fundamentals and the reason a free capitalist society needs financial companies. To channel savings to profitable investments. The current messy environment of subprime-ARM-AltA, bankrupting mortgage resets (President Bush is being presidential here), unrealistic debt ratings, and feared cascading defaults will surely pass. As will the current managements of some sloppily ran financial companies. We are living through a financial panic similar to 1893, 1907, 1929 - 32, 1989. Put your trust in the Cash Account, Long Term debt coverage ratio, book value, free cash flow ratio, capitalization ratios (the less debt the better). And the trends of these fundamentals and ratios over an entire business cycle. These ancient concepts from Investing 101 will serve you well during this panic. Also, the old testament story of Joseph and his interpretation of the Pharoah's dreams explains the business cycle better than anything else I have read. The mangy, scrawny calfs do fatten up after a while. A Restful and Happy Holidays to you and your family